14 ALSTOM’s Position on CO2Alstom is a technology company in PowerGen and Transport, not a atmospheric scientific research organisationAccept as scientifically measured fact that atmospheric CO2 concentrations & global atmospheric temperatures have risen over recent decadesAcknowledges that IPCC has recognised link between anthropogenic CO2 and earth surface temperature is unequivocalAcknowledges that Governments are establishing policy setting to counteract manmade CO2 in responseConsequently Alstom is developing technological solutions to allow our customers to meet new Govt policy settings- 01/04/ P 14

16 Total worldwide CO2 Reduction Requirements – IPCC TargetsGreenhouse gas emissions and required reductions to stabilize concentrations (IEA)Business as usual- 35/40%- 45/50%Gt CO2/Year550ppm450ppmIPCC now estimates the target CO2 concentration to limit world temperature increase to 2°C is between 350 and ppm“Business as Usual” emissions correspond to a 1.5% to 1.8% annual growth rate of GHG emissions between 2002 and 2030Reducing to 550 ppm would require 0% annual growth rate between 2002 and 2030Reducing to 450 ppm would require -0.6% annual growth between 2002 and 2030The IPCC rd Assessment Report estimated 450 ppm as the target to limit long term temperature increase to +2°CIn 2005, the IPCC Expert Meeting on Emission Scenarios estimated the target for +2°C at “maximum concentration below 450 ppm”The May 2007 IPCC Summary for Policymakers estimated the target “between 350 and 450 ppm”The lower line for “Business as Usual” is the IEA Reference Scenario for all sectors, used by VattenfallThe higher line for “Business as Usual” is with Alstom assumptions on power sector emissions, which are higher than the IEA Reference Scenario estimates

22 ALSTOM’s CO2 Strategy for Fossil Fuel Power GenerationThe 4 Pillars of Alstom’s Fight against CO2Increased efficiency of the installed baseHighest efficiencies for new coal and gas plantsCO2 capture ready for new power plantCO2 capture solutions to retrofit to the installed base and for new plants- 01/04/ P 22

23 1& 2. INCREASED EFFICIENCY From service to retrofit and new plants…Existing power plantNew power plantOwner: A. Schimkat/M. LordMRL: graph updated with Emissions factors from GHGprotocol.orgthe installed base (coal and gas): major issue is to deal with ageing installed base. Emissions that are not produced don’t have to be captured. Applying Alstom technologies to the installed base has the potential to deliver significant reductions in emissions whilst boosting plant efficiency, availability and extending its lifetime.From service to retrofit and new equipement or offer covers the full spectrum of our customer needs. While our CO2 cut consultancy helps our customers to asses to potential CO2 reductions which can be obtained on existing plants, we develop the future technologies for low or zero emissions new plants.New EquipmentHigh efficiency plantsBiomass co-firingCarbon capture and storageService and RetrofitRetrofit (efficiency improvement)Biomass Cofiring/Fuel switchIntegrated Retrofit Projects

28 3. “CAPTURE READY” PLANT CONCEPT For New Plant Built before CCS is CommercialisedThe needThe answerAddress today the issues raised by future stringent CO2 regulationsCO2 ready power plant conceptCO2 capture ready plant definition:Plant designed to have CO2 capture added at some time in the future with minimal impact on plant lifetime performance and costAvailability of a CO2 ready plant:Based on post-combustion scrubbing or oxy-combustion processes, coal-fired plants are CO2 ready provided that:Transport and storage of CO2 is validatedExtra room is left for the installation /layout for the capture plant or ASUSuitable back-end equipment is installedFuture shut-down time is minimisedOwner: P. PaelinckThe EU has already announced its intention to regulate such that fossil fuelled power plants will have to be “capture ready” by 2010.Both our US and European customers have expressed their desire that this concept should be developed rapidly for new plants.A capture ready plant ensures that:Nothing will prevent a later retrofit to CO2 capture and storageThe retrofit will be possible at minimal costs and shut-down time for the customer.ALSTOM is currently developing this concept for coal fired PC plants.Insure CO2 readiness of current power plants – IEA StandardsSource : ALSTOM analysis

29 An integrated approach is key3. “CAPTURE READY” PLANT CONCEPT CO2 “Capture Ready” concept for a Coal Power PlantOptimisation of the cooling systemRecovery of heat in the CO2 captureand compressionControl system adaptationPreparation for increased low pressure steam demand from steam turbineOptimisation of theBoiler surfaces accordingModifications of the heat load sharingProvision for auxiliaryPower consumptionProvisions in arrangement planningOwner: P. Paelinck/P. DelageOf course many new plants are being constructed at present. At present there is no economic driver to apply CO2 capture to new or old plant because there is no or only very limited opportunites to store any CO2 capture in the current situation. However this will we hope change in the future. To make it possible to apply CO2 scrubbing to newly constructed at such time as it does make economic sense we have defined the concept of a capture ready plant. The plant can be built to current standards but with space, infrastructure and features toMinimse the cost and down time needed to apply capture later. An example of such features would be to provide capacity for exhaust cleaning down to the level needed for the range of CO2 capture technologies we are developing.Improvement of flue gas cleaning and potentially addition of componentsAn integrated approach is key

31 4. CO2 CAPTURE SOLUTIONS Zero emission technology pathwaysPower Plant with CO2 CaptureSOLUTIONS DEVELOPED BY ALSTOMPre-combustion(New plants only)Oxy-combustion(New + retrofit)Post-combustion(New + retrofit)Owner: P. PaelinckSeveral solutions are being pursued in the industry for CO2 Capture, ALSTOM has given R&D priority to those solutions having also a retrofit potential on the installed base, like oxy-combustion and post combustionIn pre-combustion, the fuel, usually coal is transformed into a synthesis gas by gasification. This synthesis gas is upgraded to hydrogen through a CO shift reaction, and CO2 is removed before the hydrogen combustion in a combined cycle turbine. This process, is also called Integrated Gasification Combined Cycle, or IGCC and applies only to New PlantsIn oxy combustion, the fuel is combusted with pure oxygen. After condensation of the water a rather pure stream of CO2 is obtained, ready for compression and storage.Source: VattenfallSource: VattenfallSource: VattenfallAll require a form of Gas Separation Technology- 01/04/ P 31

32 4. CO2 CAPTURE SOLUTIONS Technology comparison –2015 Design – 650 Mwe (net)Cost of electricity comparisonBenchmark Analysis, based on EPRI, IEA, CPS, CERA studiesALSTOM analysis90USC PC and ALSTOM technologies8075,8The only valid benchmark for evaluating competitiveness of CO2 capture technologies is the COE.. The costs shown here are based on state of the art IGCC and PC technologies in the 800 MW gross/650 MW net range.IGCC has a very high starting capital cost and availability issues.While CO2 capture is less expensive on IGCC, the end result comparison on COE still favors supercritical PC with a post-combustion solution like amine, oxy-combustion. and certainly ammonia.Ammonia, if successfully developed, which we have so far all reasons to believe, will also provide for flexibility,and retrofitability to existing units, all promises that IGCC cannot fullfill.Note: Carbon capture technologies based on state-of-the art new plants – 2015 design – assumption of 47% efficiency717067,961,3CoE ($ / MWh net)58,56048,8504030SCPC withoutCaptureIGCC withoutcaptureSCPC withAmoniaCaptureSCPC with Future Amine CaptureOxy PCIGCC withcapture11

33 4. CO2 CAPTURE SOLUTIONS A. Pre Combustion Solution for New Plants: IGCC+CaptureCO2 Capture technology is proven and economical in other industriesHigh Capital and Operating CostsLimited operation flexibilityPlant retrofit: not possibleLarger Landspace requirementsHighest cost of electricityCan make sense in polygeneration contextOwner: P. Paelinck/Holger NagelALSTOM has experience in IGCC, the above picture shows the API Falconara IGCC plant, it is one of Italy's first gasification power plants fueled by oil refinery residuals. It is commercial operation since April Alstom supplied the power island equipped with an ALSTOM GT13E2 190 MW medium btu turbine.The Mit report issued in March highlighted that such IGCC plants for power production without CO2 capture did not make technical sense. These plants indeed both require much lager capital investement, well above 3000 $/kw installed in recent designs and are less efficient than USC PC plants, therby emitting more CO2 for the same MW produced.The CO2 capture technology to be used in an IGCC plant has been proven in other industries, but the compatible hydrogen turbine is still under development.Full integration of ASU, gasification, synthesis gas processing with CO2 removal, and hydrogen combined cycle power production must still be validated and presents significant challenges in terms of plant availability, flexibility, efficiency and overall cost of electricity.Furthermore this technology doesn‘t address the issue of the emissions of the installed base.For those reasons, ALSTOM has made the choice to pursue different options to develop a zero-emission power plant.Still, we believe that gasification and power production may have a future in the context of coal to liquids and polygeneration. In this respect ALTOM continues the development of lean-gas and hydrogen combution, but will not supply integrated IGCC solutions.API Falconara IGCC, 290 MW Cogeneneration with ALSTOM 190 MW GT13E2

43 Carbon intensity solutions are available today for the installed baseCO2 ConclusionCarbon intensity solutions are available today for the installed basePost Combustion CCS offers the best long term solution to fossil fuel power station GHG emissionsAlstom is participating in the development of carbon capture solutions which should be commercially available from 2015 on- 01/04/ P 4343

44 Post-Combustion Field Pilot at WE EnergiesIndustrial pilot programProject participation through EPRI by over 30 US and international utilitiesDesigned to capture up around 15,000 tons/year of CO2 at full capacityAbsorber and cooling systems commissionedErection of regenerator system in completionParametric testing to commence March 2008Will provide data necessary to establish “proof of concept”Test Bench 5 MW, start up in February 2008Pleasant Prairie Power Plant (US)This plant is now complete and will start before end-March. We had successful inauguration press conference on Feb 27, well covered in the US and international press.Note: The CO2 will not be stored, but released to atmosphere- 01/04/ P 44

45 Post-Combustion Field Pilot at E.ON KarlshamnKarlshamn Power Plant (Sweden)Industrial pilot programDesigned to capture up around 15,000 tons/year of CO2 at full capacityProject schedule:Commissionning July 08Testing Fall 2008Testing to continue into late 2009Test bench 3D schematicProject advancing on track, all main components have been ordered.- 01/04/ P 45

48 Oxy-Combustion Oxy-PC: Demonstration 30 MWth: VattenfallGoal: validation and improvementof oxyfuel process starting summer 2008Main features5,2 t/h solid fuel10t/h oxygen40 t/h steam9 t/h CO2ALSTOM supplies the oxy-boiler and ESPOwner: P. Paelinck/JF Leandri/A.SchimkatOn 20 September 2007, Vattenfall successfully installed the combustion chamber into the oxyfuel-boiler on the construction ground of the Schwarze Pumpe CO2-free pilot plant in Germany. The combustion chamber that weighs 23 tons was lifted into the boiler- house by a 600-ton-crane. Overall, the oxyfuel-boiler has a height of 25 metres, which made the process a logistic challenge. The whole process took about two hours and 30 people were involved to make it possible. The two CO2-capture tanks were installed on the same day. The combustion chamber was delivered by Alstom Power Boiler in Stuttgart, who will deliver the electrostatic precipitator for the flue gas as well.The oxy boiler installation is now complete, and will be fired in May this year for the first testing.The CO2 will be liquified and transported for storage experiments on the Altmark field.30 MWt Demonstration – Schwarze Pumpe, GermanySource: Vattenfall- 01/04/ P 48

50 Oxy-Combustion Oxy-PC: Demonstration 30 MWth: TOTAL LacqGoal: validation and improvementof oxyfuel process starting 2008Main features40 t/h steam, 240 t/day Oxygen150,000 tons CO2 will be stored in a depleted gas fieldOwner: P. Paelinck/This project is about the retrofit of an existing boiler to oxy-combustion with natural gas. Alstom is resloving the challenge to make the boiler air-tight in order to obtain the purest possible CO2 at the outlet.This will be the first European truly integrated Capture and storage project as the CO2 will be transported in an existing pipeline for storage in a depleted Oil&Gas field in Lacq.30 MWt demonstration – Lacq, FranceSource: TOTAL- 01/04/ P 50